Structuring supply chains based on product segmentation. Supply chain management, marketing, integration, customer. Canada goose case study dylan mccue ashton ratcliffe 1 introductionexecutive summary. Done properly, supply chain segmentation can significantly increase customer service and satisfaction. Effective supply chain segmentation can underpin the advanced manufacturing capabilities promised by trends such as big data and iot. Globalized companies are dealing with complex and compelling challenges such as economic volatility, fluctuating commodity prices, supply chain inefficiencies and increasing customer expectations. Pdf enabling supply chain segmentation through demand profiling. Supply chain management definitions supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers. Pdf supply chain segmentation in the sporting goods industry. The seven steps of the supply chain segmentation journey. Introducing supply chain segmentation procedures into flexibility management conference paper pdf available may 20 with 368 reads how we measure reads.
Criteria, approaches and key enablers for a segmented supply chain. Investments in supply chain security can yield better returns, as integration can lead to savings in fixed costs in areas related to transport, warehousing, distribution, and supervisory control. The effective practices of mobile phone producers green. The main advantage is its simplicity, easy to understand and to use. Complexity and interdependence are unavoidable realities for modern supply chains, and adapting supply chain. In this chapter we introduce a more holistic and practical supply chain segmentation framework that mckinsey developed. When the sarbanesoxley act sox was signed into law on july 30, 2002 it. Integration of supply chain management and marketing gupea.
Gartner presents findings from interviews with companies that have segmented supply responses to various customer demands. A new approach to supply chain segmentation will help to enforce business policy from end to end, which promises to deliver greater profitability, service levels and customer loyalty. Current market driving forces market segmentation chain differentiation. Annette clayton, vice president, global operations and supply chain, talks to turloch mooney about the new supply chain model that has been. The way jda defines supply chain segmentation is as the dynamic alignment of customer channel demands and supply response capabilities across the extended value chain. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Examples and supply chain segmentation supply chain brief. Supply chain segmentation provides input to the overall company strategy and should be in accordance with this. Integration of vaccine supply chains with other health. Constructing specific policies of inventory and supply for each segment of the market. Supply chain segmentation is a powerful strategy to mitigate supply chain complexity.
Hau lee stanford supply chain forum call it distribution or logistics or supply chain management. Sep 20, 2014 supply chain segmentation slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Each cluster is mapped for distinct policies and supply chain requirements. Nevertheless, a lot of companies still work based on the onesizefitsall principle. Analytics driving supply chain segmentation for lenovo. World bank papercrossborder agri supply chain management 6 supply chain collaboration is of utmost importance for the connection with profitable markets and consumers demands, the flow of information, goods, technology and capital and to limit transaction costs. Supplier segmentation is a process of dividing suppliers into distinct groups with different needs and characteristics or behaviour kotler et al. Supply chain segmentation enabled, mit ctl analysis. Pdf introducing supply chain segmentation procedures into. Checklist for supply chain segmentation supply chain movement. This short paper is an attempt to outline these elements and describe the sequence of activities we recommend to ensure a properly aligned and optimized supply chain foundation. Sarbanes oxley impact on supply chain management engel.
Nov, 20 canada goose case study dylan mccue ashton ratcliffe 1 introductionexecutive summary. Wielandwallenburg, 2011 supply chain management scm is the. However, in absence of the right decisionsupport tools, segmentation strategies will not yield the expected benefits. Supply chain segmentation supply chain design chainalytics. This case takes place in july of 2008, and regards two opportunities available to canada. A study using agent based modeling and simulation supply chain. The concept describes how this can be done and explores how organisations can benefit from segmenting their supply base.
Industry analysts cite segmentation as one of the key requirements of a demanddriven supply chain. Files are destroyed under proper supervision and with appropriate approvals. At its core, supply chain segmentation is a process of grouping customers by shared sets of values, then developing supply chains that can profitably meet the needs of each customer group on its own terms. The advantage of supply chain segmentation is that it allows management to work strategically with the supply chain of the company. Pdf purpose whilst there are a plethora of theoretical ideas regarding a segmented approach to supply chain strategy, there is paucity of. It clearly details the power of segmentation and offers a systematic plan for implementation in the supply chain.
Regarding the data files, data was stored in individual files for each year and then. Most how to advice on supply chain segmentation focuses exclusively on 2. A true demanddriven supply chain ddsc has always been the holy grail of operations. This report attempts to help break the psychology that keeps organisations endlessly optimising a onesizefitsall supply chain architecture, and limits the adoption of segmentation as a core, repeatable business process. Application of hysteresis for stable segmentation within. Sku clustering for supply chain planning efficiency. Mckinsey supply chain segmentation framework springerlink. Supply chain management definitions supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Most how to advice on supply chain segmentation focuses. Globalized companies are dealing with complex and compelling challenges such as economic volatility, fluctuating commodity prices, supplychain inefficiencies and increasing customer expectations. Implement a segmented supply chain strategy for profitable. Sku segmentation is a concept that demonstates an economic benefit behind treating and handling some products differently than others.
Globalized companies are dealing with complex and compelling. A supply chain segmentation strategy requires executive. In an effort to reduce supply chain risk and to promote the maximum flexibility, every effort should be made to migrate spend from the key quadrant to standard. If you continue browsing the site, you agree to the use of cookies on this website. Clientoriented supply chain segmentation for hightech hardware by. World bank papercrossborder agri supply chain management 6 supply chain collaboration is of utmost importance for the connection with profitable markets and consumers demands, the flow of. Scoring methodssuch as risk matrices or failure mode effects analysishave. Chopra and sodhi 2014 explain the benefit of supply chain segmentation and supplier diversification. In this paper, we will highlight three improvements that make designing and implementing a supply chain segmentation strategy easier and. Dealing with supply chain segmentation, the most concepts and approaches involve the adaption of production or delivery.
Complexity and interdependence are unavoidable realities for modern supply chains, and adapting supply chain processes to meet these new realities is crucial for survival. Conference paper pdf available may 20 with 368 reads. Output the output of this tool is a breakdown and overview of the. Understand how your supply chain organization, distribution center or manufacturing site measure against competitors to close performance gaps. Pdf enabling supply chain segmentation through demand. The global supply chain analytics market size was usd 3,460. Simulating severe supply chain disruptions with multiple. Supply chain optimization through segmentation and. Scoring methodssuch as risk matrices or failure mode effects analysishave become a popular method to assess supply chain risk in a qualitative or pseudoqualitative manner. Dells supply chain transformation gattorna alignment.
The integration of vaccine supply chains with those for other health commodities can lead to improved economies of scale and scope. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Supply chain segmentation is an iterative process as there is a constant change in customer requirements. The next step in supply chain excellence, we discussed some of the fundamentals for creating a supply chain segmentation strategy. How to conduct a supply chain business impact analysis. Introducing supply chain segmentation procedures into flexibility management. Checklist for supply chain segmentation supply chain. While a companys physical assetsraw materials, factory resources, warehouses, distribution centers and channelsmay be the same across all. To maximize effectiveness of supply chain segmentation, it is important to.
Integrating the supply chains of vaccines and other health commodities. The supply chain consists of both the physical and cyber supply chains. Jan 02, 2014 industry analysts cite segmentation as one of the key requirements of a demanddriven supply chain. This puts more pressure on the supply chain to leverage analytics to improve supply chain segmentation and demand translation, says gartner research in a report titled, the five things chief supply chain officers need to know about industrie 4. Supply chain segmentation is operating distinctly different, endtoend value chains optimized to deliver bottomline value. In our previous supply chain segmentation paper, supply chain segmentation. Output the output of this tool is a breakdown and overview of the companys supply chain. Global supply chain analytics market size industry. This report attempts to help break the psychology that keeps organisations endlessly optimising a one.
Studies of production processes reveal that the indirect co 2 emissions of the production processes depend on the local electrical resources nakamichi et al. This case takes place in july of 2008, and regards two opportunities available to canada goose a luxury jacket company based in ontario. However, supply chain solutions will not only be impacted by the needs segmentation of the customer. Nowadays, to effectively meet demand service needs, across products, format, response, and method, it is essential businesses understand that not one customer, channel to market, or product, are the same.
This puts more pressure on the supply chain to leverage analytics to improve supply chain segmentation and demand translation, says gartner research in a report titled, the five things chief supply chain. To facilitate this, the author covers the components of an integrated segmentation policy. Each product that enters the supply chain needs to be individually recorded. Pdf introducing supply chain segmentation procedures. A new approach to supply chain segmentation will help to enforce. Supply chain optimization through segmentation and analytics. Investments in supply chain security can yield better returns, as. The idea of supplier segmentation is pretty simple grouping suppliers in a supply base by their impact on the business rogers, 2009 supplier segmentation is the process of dividing suppliers into distinct groups. This is evident in the way the main supply chain 4. Costtoserve is the cost of all supply chain activities from taking the customer order upto delivering the order.
The increasing fragmentation of todays markets implies that supply chains need to handle very different products and serve customers with different needs. Supply chain segmentation analysis linkedin slideshare. Supply chain business solutions apics for business. The semistructured interview format provided this method as general. The framework is based on the governing principle that segmentation should add value to the supply chain without increasing its complexity cost significantly. The increasing fragmentation of todays markets implies that supply chains need to handle very different products. The procedure defines the naming process, the retention period, and the place and controller of files. Supply chain leadership distinctive approaches to innovation, collaboration, and talent alignment 1. Companies that successfully deploy segmentation strategies will have improved customer service and sales, higher growth and margins and a deeper multichannel penetration.
Integrating the supply chains of vaccines and other health. To facilitate this, the author covers the components of an integrated segmentation policy, including the analytics elements and the measures that define segmentation success. In simple terms, supply chain segmentation is about grouping customers. Segmentation is a method of dividing a supply chain into two or more groupings where the supply chains operate differently and more efficiently andor effectively. Gartner presents findings from interviews with companies that have segmented. Segmenting customer accounts on the basis of purchase volume and profitability can also. National director of client service resources global professionalsscm practice 74031979. It provides agencies, donors, decisionmakers, and partners with a brief overview of supply chain integration. Companies that successfully deploy segmentation strategies will have improved customer service and sales, higher. A study using agent based modeling and simulation supply chain management is a complex process requiring the coordination of numerous decisions in the attempt to balance oftenconflicting objectives such as quality, cost, and ontime delivery. Supply chain segments and supply chain phenotypes volker advantage.
Scor is the worlds leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The demanddriven supply chain boston consulting group. While a companys physical assetsraw materials, factory resources, warehouses, distribution centers and channelsmay be the same across all segments, its processes and policies for predicting customer demand and positioning supply can be different from one segment to another. Sarbanes oxley impact on supply chain management robert j. Why advanced supply chain segmentation is a route to. The company has been offered longterm contracts by two distinct national retailers of highend clothing. Constructing specific policies of inventory and supply for each segment of the market creates. The next step in supply chain excellence, we discussed some of the fundamentals for creating a supply chain segmentation. They also need to reflect the characteristics of the products, in particular the volume of demand and the variability of that demand fisher, 1997. Different products at different stages of the product lifecycle can lead to several strategies being used simultaneously.